Assume for a Competitive Firm That MC = AVC at $12

question 124

Multiple Choice

Assume for a competitive firm that MC = AVC at $12, MC = ATC at $20, and MC = MR at $16. This firm will

• A)realize a profit of $4 per unit of output.
• B)maximize its profit by producing in the short run.
• C)minimize its losses by producing in the short run.
• D)shut down in the short run.

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Definitions:

Zygote

The cell that is formed from the union of the egg and sperm.

Mesoderm

The middle layer of an embryo in early development, which gives rise to muscles, bones, and other connective tissues.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the outer layer of skin and nervous system.

Endoderm

The innermost layer of cells or tissue of an embryo in early development, which gives rise to the linings of the digestive and respiratory systems.